Indicating reduced profitability in the video display market, Fujitsu (OTC: FJTSY) has announced its departure from the production of high end plasma televisions. This news comes via ars technica and is indicative of a major trending pattern. Much is astir among Japanese electronics manufacturers as companies there take a turn for the lean and are engaged in forming manufacturing power alliances.

Much is being affected by the near total domination of liquid crystal display technology within a tightening, yet deepening image display sector. Take further evidence of change by considering Brian White's post about the exit from rear projection television by Sony Corp. (NYSE: SNE). The LCD field is currently saturated and for it's improvement it needs to thin out.

Strides are still being made in regard to making LCD displays thinner and engineers are working on reducing power consumption. Little can be done however, to improve LCD profitability with so many companies cranking out cheap displays. What's needed now is for some of the remaining display manufacturers to aggressively address some considerable quality issues.

Gary Sattler does not knowingly hold financial interest in the companies he blogs about.

Looks like Sony Corp. (NYSE: SNE) won't be resting under fearless CEO Sir Howard Stringer any time soon. The consumer electronics giant continues to get hammered in so many of the staple businesses that used to make up its bread-n-butter. In the latest installment, a rising star in the flat-panel television business seems to have its hand around Sony's neck in that market.

Vizio, a virtual unknown in the television business 18 months ago, has been undercutting plasma and LCD television prices for quite some time in the retail sector and is squeezing profits from Sony, Samsung and other big names. While competition is good, Sony may be publicly proclaiming that rapid-fire and deep flat-panel television pricing may be bad for the overall television market. Privately, Sony is probably feeling the profit pinch by this newer competitor that has ascended to the top spot in flat-panel LCD televisions shipped to retailers in the second quarter of this year.

How does Vizio do it? By using contract manufacturers for making all its televisions and a unique distribution strategy, according to CEO William Wang. Is Sony in such a diverse retail distribution field that includes Circuit City, Wal-Mart, Costco, Kmart and Sears? Apparently not -- but Vizio is. And, all that retail exposure is fanning the flames of its incredible flat-panel television sales. Would you rather spend $1,000 on a 32-inch Sony LCD television or a 47-inch Vizio unit if the quality was comparable? Customers are choosing Vizio.

Vizio was a plasma flat-panel TV manufacturer that some think was single-handedly responsible for lowering the prices of retail flat-panel televisions into the mainstream at the end of 2005 and into 2006. The price drops on flat-panel TVs also has been given as a reason by Circuit City (NYSE: CC) for a few horrible quarters recently.

When Vizio started selling the first plasma flat-panel TVs under $2,000 over a year ago, market names like Sony (NYSE: SNE) and Samsung probably started quaking in their boots. That's because when a manufacturer offers what appears to be essentially the same product that a large-name brand offers, those same large-name brands must face price declines to match the new competition or risk lower sales as customers flock to lower-priced TV sets with the same physical size (as in 50 inches, for example). Now, the perceived leader in "low prices" is hooking up with the company that created the lowest price in flat-panel large-screen television sets.

From all initial accounts, Vizio's larger flat-panel TV sets won't be significantly lower in price than the same (or comparable) Vizio models already being sold at wholesale clubs like Costco or BJ's Wholesale. Well, I'm quite sure that there is not much room to negotiate Vizio flat-panel television retail prices. But the 3,300+ Wal-Mart Stores (NYSE: WMT) locations alone will give the retailer an exposure advantage when it comes to Vizio sales. At this time, Vizio will make LCD flat-panel TVs (as opposed to plasma TVs) available in Wal-Mart locations in sizes ranging from 26 to 42 inches.

Has the battle over the television remote ever been won? The fierce battles over which programs to watch, when to watch them and who would like to watch them have been the center of many household struggles all over the world. Yes, the blow(s) have been softened by TiVos and multiple televisions in many cases, but with certain prime-time (and other) programming now being beamed through the air in hi-def format, the battle may have been re-ignited.

In that arena, a new study by the largest consumer electronics retailer in the U.S. -- Best Buy Company Inc. (NYSE:BBY) -- concluded that the influence of women on consumer electronics purchases is quickly growing. The interest in consumer electronics goes even beyond aesthetics, which comes as a surprise to many. The survey had a result which I found astounding -- women have a much higher interest in the technical aspects of setting up a home theater. Wow.

What is Best Buy doing? Why, ensuring its female contingent is properly served, of course, "Deciding on an HDTV is an emotional purchase – we've heard from many couples that it can be as complex a decision as deciding on a car or even a house," according to a Best Buy executive. A television purchase is up there with a car or even a house? Holy cow those are some odd priorities. But, as the television is such a multi-modal entertainment device, I guess it makes sense.

I guess those who thought that the days of the television were over with the advent of the Internet did not consider the female factor in the equation -- as I didn't see "Broadband Internet Access" in that list.

With flat-screen TVs (LCD and Plasma, mainly) being THE hot category in retail electronics these days, the bevy of brands, selections and formats has never been quite as...confusing. The sheer number of brands alone is staggering. But then this is just what happens any time a consumer electronic product gets hot.

When the ubiquitous iPod came onto the scene, names you've never heard of (and may never again) began offering their versions of "digital music players. Same goes for digital cameras a few years back.

Now digital TVs -- HDTVs to be exact -- are entering that same buying frenzy economists and marketers call the "tip of the product cycle." With the CES (Consumer Electronics Show) starting soon, makers of everything from HDTVs to credit card-sized camcorders to earring MP3 players (?!) will be showing their wares and signing deals with distributors and retailers. They will help clog up the supply pipelines of Best Buy Co.,Inc. (NYSE:BBY), Circuit City Stores, Inc. (NYSE:CC) and other retailers with plenty of selection, price points, features and....other things most consumers could care less about (except price).

I've been studying Vizio, a company that came out of nowhere a few years ago to take the plasma TV scene by storm by selling very decent-quality flat-screen TVs at prices that make Sony and Samsung shudder (even today). Are we going down the product lifecycle pricing curve now? Expect 2007 to be a definite answer to that question. We'll check back a year from now.